9019 Motion to Approve Settlement with Walchek Parties

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 1 of 33

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA WEST PALM BEACH DIVISION www.flsb.uscourts.gov

In re: CHAPTER 11

PALM BEACH FINANCE PARTNERS, L.P., Case No. 09-36379-PGH PALM BEACH FINANCE II, L.P., Case No. 09-36396-PGH (Jointly Administered) Debtors. ______/

LIQUIDATING TRUSTEE’S MOTION FOR APPROVAL OF SETTLEMENT WITH THE WALCHEK PARTIES AND PAYMENT OF CONTINGENCY FEE

Any interested party who fails to file and serve a written response to this motion within 21 days after the date of service stated in this motion shall, pursuant to Local Rule 9013-1(D), be deemed to have consented to the entry of an order in the form attached to this motion. Any scheduled hearing may then be cancelled.

Barry E. Mukamal, in his capacity as liquidating trustee (“Liquidating Trustee”) for the Palm

Beach Finance Partners Liquidating Trust (“PBF Liquidating Trust”) and Palm Beach Finance II

Liquidating Trust (“PBF II Liquidating Trust”; and together with the PBF Liquidating Trust, the

“Liquidating Trusts”), by and through undersigned counsel, and pursuant to Fed. R. Bankr. P. 9019, seeks an Order from this Court approving a settlement of claims that could be asserted against the W

Charitable Foundation, Walchek Family Revocable Trust dated November 19, 1998 (“Trust”), Walchek

Integrity L.P., Integrity Partners Investment Company, LLC and Scott and Kelli Walchek, both in their individual capacities and as trustees for the Trust (the foregoing parties are collectively referred to as the

“Walchek Parties”) as well as the allocation of the settlement proceeds as between the Liquidating

Trusts. In support of this relief, the Liquidating Trustee states the following:

1 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 2 of 33

I. Factual Background

A. The Pre-Petition Activities of the Palm Beach funds

1. The Liquidating Trusts are the successors in interest to Palm Beach Finance Partners,

L.P. (“PBF I”) and Palm Beach Finance II, L.P. (“PBF II”).

2. The Palm Beach funds were formed to lend monies in purchase financing transactions supposedly brokered by Thomas Petters and his company, Petters Company, Inc. (“PCI”) in the consumer goods business. The idea was that the funds and other lenders would supply bridge financing to PCI and then later, once goods were received by a particular big box retailer, the retailer would remit the payment to the lender or PCI.

3. In reality, the Palm Beach Funds’ investments in PCI were worthless - PCI’s purchase and financing transactions were fictitious and part of an elaborate, multi-billion dollar ponzi scheme perpetrated by Mr. Petters, Deanna Munson a/k/a Deanna Coleman, Robert White and others. No retailer ever made any payment on the purchase and sale of goods because the deals never existed.

4. On September 24, 2008, federal agents raided Mr. Petters’ offices. Thereafter, Mr.

Petters’ companies were placed into federal receivership. Ultimately, Mr. Petters was convicted of his crimes and sentenced to 50 years in prison. Other persons complicit in the fraud were sentenced to prison sentences as well.

5. On November 30, 2009 (“Petition Date”), the Palm Beach funds commenced chapter 11 bankruptcy cases by filing voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the

United States Bankruptcy Court for the Southern District of Florida (“Bankruptcy Court”).

6. On October 21, 2010, the Bankruptcy Court entered its Order Confirming Second

Amended Plan of Liquidation [ECF No. 444], creating the Liquidating Trusts and appointing the

Liquidating Trustee as liquidating trustee.

2 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 3 of 33

B. Transfers Made to the Walchek Parties

7. W Charitable Foundation and Walchek Integrity L.P. were limited partners in PBF II.

8. W Charitable Foundation received cash transfers in the amount of $2,246,914 with respect to its limited partner investment in PBF II.

9. Walchek Integrity L.P., or other members of the Walchek Parties, received cash transfers in the amount of $18,718,672 with respect to its limited partner investment in PBF II.

10. Mr. Walchek held an equity interest in the Palm Beach funds’ management entities, Palm

Beach Capital Management, LLC and Palm Beach Capital Management, LP (collectively, the

“Management Entities”).

11. With respect to such equity interest, Mr. Walchek, or other members of the Walchek

Parties, received $6,810,588 from the Management Entities four years prior to the Petition date. The monies used to fund such payments were sourced from both of the Palm Beach funds.

12. The Liquidating Trustee commenced litigation to recover all of the above transfers from the Walchek Parties (“Litigation”). The Liquidating Trustee brought suit to avoid and recover

$20,965,586 in transfers made on account of limited partnership interests in PBF II (“LP Claims”) and

$6,810,588 in transfers from the Management Entities (“Management Claims”).

II. Settlement Terms

13. Because of the significant amount of transfers made to the Walchek Parties and large

multi-million unpaid tax liabilities owed by them to federal and state taxing authorities, collectability

has been a significant concern for the Liquidating Trustee.

14. After filing the Litigation, the parties mediated with the end result being that the Walchek

Parties provided significant financial data for a multi-year period regarding their historical transfers,

assets and liabilities.

3 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 4 of 33

15. Based on this data, the Liquidating Trustee confirmed that collectability against the

Walchek Parties was a significant issue that militated in favor of settlement.

16. After several months of negotiation, the parties have settled the Litigation. The key aspects of the stipulation of settlement between the parties (“Stipulation”) are the following:1

a) Upon approval of the Stipulation, Mr. and Mrs. Walchek will pay (or cause to be paid) $390,000 within three years, or if such payment is not made by then, $415,000 within four years (“Settlement Payment”).

b) In the event the Walchek Parties fail to pay the settlement amount outlined above, the Liquidating Trustee will be entitled to a judgment against Mr. and Mrs. Walchek in the amount of $2,000,000 (“Judgment”). Initially, the Judgment will be subject to forbearance conditions, however, after December 31, 2017, the Liquidating Trustee may engage in all efforts to collect upon the Judgment.

c) The parties shall exchange mutual, general releases with specific carveouts; and

d) The Walchek Parties shall not be entitled to any distribution from the Palm Beach bankruptcy estates.

17. Pursuant to the Second Amended Joint Plan of Liquidation, approved by this Court’s

Order dated October 21, 2010 [ECF No. 444], all monetary consideration received by the Liquidating

Trusts in conjunction with the Stipulation will be allocated as follows: 18% to the PBF Liquidating Trust and 82% to the PBF II Liquidating Trust (“Pro Rata Allocation Formula”).

18. Here, the Liquidating Trustee proposes to deviate from the Pro Rata Allocation Formula to take into account that any recovery related to the LP Claims would flow solely to PBF II Liquidating

Trust while any recovery related to the Management Claims would be apportioned between the

Liquidating Trusts pursuant to the Pro Rata Allocation Formula.

1 A copy of the Stipulation is attached as Exhibit 1. To the extent the terms of the agreement differ with the terms set forth in this Motion, the agreement shall control. 4 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 5 of 33

19. The Liquidating Trustee proposes that the amount of any recovery to be paid to the

Liquidating Trusts be determined by modifying the Pro Allocation Formula as follows (“Modified Pro

Allocation Formula”):

(Management Claims) X (Recovery) X 18% = Amount of Recovery (Management Claims + LP Claims) to PBF Liquidating Trust

20. By way of example, if the recovery from the Walchek Parties is $390,000, then the amount of consideration flowing to the PBF Liquidating Trust is $17,212, with the balance flowing to the PBF II Liquidating Trust.

III. Relief Requested

21. The Liquidating Trustee seeks an Order from this Court (a) approving the Stipulation and

(b) approving the Contingency Fee (as defined below).

22. Federal Rule of Bankruptcy Procedure 9019 provides in relevant part that [o]n motion . .

. and after a hearing on notice to creditors; the debtor . . . and to such other entities as the Court may designate, the Court may approve a compromise or settlement.”

23. Approval of a settlement in a bankruptcy proceeding is within the sole discretion of the

Court and will not be disturbed or modified on appeal unless approval or disapproval is an abuse of discretion. In re Arrow Air, 85 BR 891 (Bankr. S.D. Fla. 1988).

24. The standards for approval are well settled and require the Court to inquire into the reasonableness of the proposed settlement. See, e.g., Protective Comm. for Indep. Stockholders of TMT

Trailer Ferry, Inc. v. Anderson, 390 U.S. 414, 424 (1968); In re W.T. Grant Co., 699 F.2d 599, 608 (2d

Cir. 1983); Florida Trailer and Equip. Co. v. Deal, 284 F.2d 567, 571 (5th Cir. 1960). The inquiry need only determine whether the settlement falls below the lowest point of the range of reasonableness. See

W.T. Grant Co., 699 F.2d at 608; see also In re Martin, 91 F.3d 389 (3rd Cir. 1996); In re Louise's Inc.,

5 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 6 of 33

211 B.R. 798 (D. Del. 1997) (setting forth considerations by the Court for approval of a settlement, including: (i) the probability of success in litigation, (ii) the likely difficulties in collection; (iii) the complexity of the litigation involved, and the expense, inconvenience and delay necessarily attending it; and (iv) the paramount interest of the creditors.

A. The Stipulation Ought to be Approved

25. Based upon the above legal principles, the Liquidating Trustee asserts that the Stipulation falls well above the lowest point of the range of reasonableness, and thus, should be approved.

Probability of success in litigation

26. The Liquidating Trustee, on behalf of the Liquidating Trust, asserts in the Litigation that the transfers made to the Walchek Partiers were fraudulent transfers under federal and state law.

27. The Liquidating Trustee believes that he will likely succeed in prosecuting the Litigation.

28. Nonetheless, the Liquidating Trustee acknowledges that there are risks inherent in all litigation and there is the possibility that the Walchek Parties could raise certain issues or defenses that potentially could impact the Liquidating Trustee’s claims.

Collectability

29. Collectability is a substantial consideration.

30. The financial data provided by the Walchek Parties establishes that the primary assets held by them are limited relative to the amount of the Liquidating Trustee’s claims in the Litigation and that such assets are difficult to value and illiquid in nature and potentially subject to multi-million taxing authority liens at the federal and state level that may be senior in priority to any judgment obtained by the Liquidating Trustee.

6 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 7 of 33

31. As such, assuming the Liquidating Trustee was successful in obtaining a judgment

against any of the Walchek Parties, collection efforts would be hampered and ultimately could yield a de minimis recovery.

Complexity of litigation and attendant expense, inconvenience and delay

32. This is a meaningful consideration that militates in favor of approval of the Stipulation.

33. In sum, although many of the claims outlined above are typical claims litigated before this Court, they still potentially require retention of experts and extensive fact discovery before a trial could take place. The result of these efforts will be substantial fees of professionals that could diminish the net result of any recovery to creditors in these bankruptcy cases.

34. The Stipulation addresses these concerns. The parties avoid litigating fact specific claims, with the attendant expense and delay of litigation being nullified.

Paramount interest of creditors

35. The Settlement Payment represents a reduced yet meaningful recovery of the transfers made to the Walchek Parties. Although this recovery deviates from the proportion of recovery that the

Liquidating Trustee has achieved in other similarly situated litigations, this deviation is appropriate in

light of the Walchek Parties’ significant collectability issues. Moreover, the Stipulation gives certainty to the estate and avoids the risk, expense and delay attendant with litigation. As such, the Stipulation is in the paramount interest of creditors and should be approved.

B. The Contingency Fee Ought to be Approved

36. Pursuant to the Plan and this Court’s Order Approving the Trustee’s Motion to Approve

Hybrid Form of Compensation [ECF No. 223], Meland Russin & Budwick, P.A. (“MRB”) is entitled to

a contingency fee of 10% for any affirmative recovery it obtains on behalf of the Liquidating Trusts

without further order of the Court (“Contingency Fee”).

7 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 8 of 33

37. As such, MRB requests that the Contingency Fee be paid from the Settlement Payment

when paid, without further Order from this Court, or in the event that the Settlement Payment is not

made, from any recoveries achieved by MRB in collecting upon the Judgment.

WHEREFORE, the Liquidating Trustee requests that this Court enter an Order (similar in form to the Order attached as Exhibit 2) (1) approving the Stipulation; (2) approving the modification allocation of any recovery from the Walchek Parties between the Liquidating Trusts; (3) approving payment of the Contingency Fee and (4) granting such other relief this Court deems just and proper.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that, on January 3, 2014, a true and correct copy of the foregoing was

served via the Court’s Notice of Electronic Filing on those parties listed on the attached Exhibit 3, and

via U.S. Mail to the parties listed on the matrix attached as Exhibit 4, and Carl D. Ciochon, Esq.,

Wendel, Rosen, Black & Dean LLP, 1111 Broadway, 24th Floor, Oakland, CA 94607.

s/ Jonathan S. Feldman Jonathan S. Feldman, Esquire Florida Bar No. 12682 [email protected] MELAND RUSSIN & BUDWICK, P.A. 3200 Southeast Financial Center 200 South Biscayne Boulevard Miami, Florida 33131 Telephone: (305) 358-6363 Telecopy: (305) 358-1221

Attorneys for Barry E. Mukamal, Liquidating Trustee

8 LAW OFFICES OF MELAND RUSSIN & BUDWICK, P.A. 3200 SOUTHEAST FINANCIAL CENTER, 200 SOUTH BISCAYNE BOULEVARD, MIAMI, FLORIDA 33131 • TELEPHONE (305) 358-6363 {Firm Clients/4189/4189-1/01373106.DOC.}

Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 9 of 33

EXHIBIT 1 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 10 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 11 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 12 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 13 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 14 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 15 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 16 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 17 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 18 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 19 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 20 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 21 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 22 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 23 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 24 of 33 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 25 of 33

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA WEST PALM BEACH DIVISION www.flsb.uscourts.gov

In re: CHAPTER 11

PALM BEACH FINANCE PARTNERS, L.P., Case No. 09-36379-PGH PALM BEACH FINANCE II, L.P., Case No. 09-36396-PGH (Jointly Administered) Debtors. ______/

ORDER GRANTING LIQUIDATING TRUSTEE’S MOTION FOR APPROVAL OF SETTLEMENT WITH THE WALCHEK PARTIES AND PAYMENT OF CONTINGENCY FEE [ECF NO. ]

THIS CAUSE came before the Court upon the Liquidating Trustee’s Motion for Approval of

Settlement with the Walchek Parties and Payment of Contingency Fee [ECF No. _____] (the

“Motion”). 1 The Court, having reviewed the Motion and noting that a Certificate of No Response

and Request for Entry of Order has been filed, finds that the notice of the proposed compromise and

1 All capitalized terms not defined in this Order shall have the meaning ascribed to such term as set forth in the Motion.

EXHIBIT 2 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 26 of 33

settlement is sufficient to comply with Bankruptcy Rules 9019 and 2002(a)(3), Local Rule 9013-1(D)

and any other applicable notice requirement, and accordingly, it is:

ORDERED as follows:

1. The Motion is GRANTED.

2. The Stipulation is APPROVED.

3. Scott and Kelli Walchek shall pay, or cause to be paid, the Settlement Payment in

accordance with the terms and deadlines set forth in the Stipulation.

4. The Settlement Payment or any recoveries from collecting upon the Judgment will be

allocated and apportioned between the Liquidating Trusts pursuant to the Modified Pro Allocation

Formula.

5. MRB’s Contingency Fee is approved. The Liquidating Trustee is authorized and directed make payment of the Contingency Fee without the need of further Court Order, in accordance with the Modified Pro Rata Allocation Formula, promptly upon receipt of the Settlement

Payment or from any recoveries obtained in collecting upon the Judgment.

6. The Court retains jurisdiction to enforce the terms of the Settlement.

###

Submitted By: s/ Jonathan S. Feldman, Esq. Jonathan S. Feldman, Esquire Florida Bar No. 12682 [email protected] MELAND RUSSIN & BUDWICK, P.A. 3000 Southeast Financial Center 200 South Biscayne Boulevard Miami, Florida 33131 Telephone: (305) 358-6363 Telecopy: (305) 358-1221 Attorneys for the Liquidating Trustee

Copies Furnished To: Jonathan S. Feldman, Esquire, is directed to serve copies of this Order on all parties in interest and to file a Certificate of Service.

CM/ECF LIVE - U.S. Bankruptcy Court:flsb Page 1 of 6 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 27 of 33

Mailing Information for Case 09-36379-PGH

Electronic Mail Notice List

The following is the list of parties who are currently on the list to receive email notice/service for this case.

EXHIBIT 3 https://ecf.flsb.uscourts.gov/cgi-bin/MailList.pl?213363698403229-L_1_0-1 12/23/2013 CM/ECF LIVE - U.S. Bankruptcy Court:flsb Page 2 of 6 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 28 of 33

 Charles W Throckmorton [email protected], [email protected];[email protected]  Trustee Services Inc 2 [email protected], [email protected]  Skipper J Vine [email protected]  Jessica L Wasserstrom [email protected], [email protected];[email protected]  Morris D. Weiss [email protected], [email protected];[email protected]  George L. Zinkler [email protected]

No Notice List

The following is the list of parties who are on a related AP case and have asked not to receive notice/service for this lead BK case.

 Kenneth S Pollock [email protected], [email protected];[email protected];[email protected]

Manual Notice List

The following is the list of parties who are not on the list to receive email notice/service for this case (who therefore require manual noticing/service). You may wish to use your mouse to select and copy this list into your word processing program in order to create notices or labels for these recipients.

Michael B Apfeld 780 North Water Street Milwaukee, WI 53202

Steven Bakaysa 2251 Wigwam Pkwy #1026 Hendesron, NV 89074

James F Bendernagel 1501 K St, NW Washington, DC 20005

Sean M. Berkowitz 233 South Wacker Drive Chicago, IL 60606

John B Berringer 599 Lexington Ave 22nd Fl New York, NY 10022

Sean O'D. Bosack 780 N Water St. Milwaukee, WI 53202

Sarah E Bushnell 80 S 8 St Minneapolis, MN 55402

Carl D. Ciochon 111 Broadway 24th Floor Oakland, CA 94607

Andrew Davis 150 S Fifth St. #2300 Minneapolis, MN 55402

Gregory W Deckert 12912 63 Ave N Maple Grove, MN 55369

Pete L Demahy 150 Alhambra Cir Coral Gables, FL 33134

Pete L Demahy 2333 Ponce de Leon Blvd #600 Coral Gables, FL 33134

Mary Sue Donohue 5355 Town Center Rd #801 Boca Raton, FL 33486

Gonzalo R Dorta 334 Minorca Ave Coral Gables, FL 33134

Gonzalo R Dorta 334 Minorca Ave Miami, FL 33134

Edward J Estrada 599 Lexington Ave 22 Flr New York, NY 10022

William Evanoff 1 S Dearborn St Chicago, IL 60603

https://ecf.flsb.uscourts.gov/cgi-bin/MailList.pl?213363698403229-L_1_0-1 12/23/2013 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 29 of 33

Palm Beach Diversified Income, LLP West Capital Management Albert Liguori by and through David Harrold, its officer st 1818 Market St, #3323 16590 Crownsbury Way, #201 712 NE 71 Street Boca Raton, FL 33487 Philadelphia, PA 19103 Ft. Myers, FL 33908

Amy Davenport Robert Davenport Robert Davenport, Jr. PO Box 3511 3 Greenwich Dr 104 S. Pecos Street Midland, TX 79702 Midland, TX 79705 Midland, TX 79701

ARIS Multi-Strategy Fund, LP ARIS Capital Management Armadillo Fund Aris Capital Management 645 Fifth Avenue, Suite 903 40 Random Farms Cir 645 Fifth Avenue, Suite 903 New York, NY 10022 Chappaqua, NY 10514 New York, NY 10022

BTA Oil Producers Lynda Beal Nancy Beal 104 S Pecos St 104 S Pecos St 104 S Pecos St Midland, TX 79701 Midland, TX 79701 Midland, TX 79701

Spencer Beal Barry Beal Keleen Beal 104 S Pecos St 104 S Pecos St 104 S Pecos St Midland, TX 79701 Midland, TX 79701 Midland, TX 79701

BayRoc Associates Kelly Beal JamiScott LLC c/o JamiScott 104 S Pecos St 15 W 53rd St #24-B 15 W 53rd St. #24-B Midland, TX 79701 New York, NY 10019 New York, NY 10019

Leslie Schneider Scott Schneider Leonard & Lillian Schneider c/o JamiScott c/o JamiScott c/o JamiScott LLC 15 W 53rd St., #24-B 15 W 53rd St, #24-B 15 West 53rd St #24-B New York, NY 10019 New York, NY 10019 New York NY 10019

Blackpool Absolute Return Fund, LLC Blackpool Partners, LP c/o John E. Page, Esquire Beacon Partners, Ltd 701 Harger Rd, #190 Shraiberg Ferrara & Landau, PA 3030 McKinney Ave, #305 Oak Brook, IL 60523 2385 NW Executive Ctr Dr #300 Dallas, TX 75204 Boca Raton, FL 33431

Attn: Andrew N. Friedman, Esq. Centermark Asset Management Claude Lestage Cohen Milstein Sellers & Toll, PLLC 21320 Baltic Dr 4893 N Kay 1100 New York Avenue, N.W. Cornelius, NC 28031 Palm Beach Gardens, FL 33418 Suite 500, West Tower Washington, D.C. 20005

MIO Partners Inc McKinsey Master Retirement Trust Special Situations Investment Fund, L.P. c/o c/o Robin E. Keller, Esq. c/o Robin Keller, Esq. Robin Keller, Esq. Hogan Lovells US LLP Hogan Lovells US LLP Hogan Lovells US LLP 875 Third Avenue 875 Third Avenue 875 Third Avenue New York, NY 10022 New York, NY 10022 New York, NY 10022 EXHIBIT 4 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 30 of 33

Douglas A. Kelley, Chapter 11 Trustee Deer Island, LP Dennis Dobrinich Attn: James A. Rubenstein, Esq. 4 Nason Hill Lane 3860 Dogwood Ave 4800 Wells Fargo Center Sherborn, MA 01770 Palm Beach Gardens, FL 33410 90 South Seventh Street Minneapolis, MN 55402

Douglas A. Kelley, Chapter 11 Trustee Father's Heart Family Foundation Inc. Frank Carruth Attn: Terrence J. Fleming, Esq. 8292 Nashua Dr 5407 S Flagler Dr 4200 IDS Center 80 South Eighth Street Palm Beach Garden, FL 33418 West Palm Beach, FL 33405 Minneapolis, MN 55402

Freestone Entities Fulbright & Jaworski Geoffrey Varga and Neil Morris c/o Mr. Justin Young 2100 IDS Center Joint Liquidators of Palm Beach Offshore/ c/o Mark W. Eckard, Esq. 1918 Eighth Avenue, Suite 3400 80 South Eighth Street 1201 N. Market Street, Suite 1500 Seattle, WA 98101 Minneapolis, MN 55402-2112 Wilmington, DE 19801

Edward J. Estrada, Esquire Golden Gate VP Absolute Return Fund, LP Christopher A. Lynch, Esquire George & Nancy Slain c/o Michael J. Cordone, Esq. Reed Smith LLP 59-1089 Maluhi Pl Stradley Ronon Stevens & Young, LLP 599 Lexington Avenue, 22nd Floor Kamuela, HI 96743 2600 One Commerce Square New York, NY 10022 Philadelphia, PA 19103 Guy M. Hohmann, Esq. and Golden Sun Multi-Manager Fund, LP Attn: Mitchell Herr Mesrrs. Taube, Weiss and Taylor Golden Sun Capital Management Holland & Knight, LLP Hohmann, Taube & Summers, L.L.P Attn: Solomon Halpern 100 Congress Ave, 18th Floor 701 Brickell Ave, Suite 3000 885 Arapahoe Avenue Austin, TX 78701 Miami, FL 33131 Boulder, CO 80302

Janette Bancroft Janet Bonebrake James Corydon 9052 SW 103 Ave 13956 San Pablo Ave., Apt. 336 6650 N Tower Circle Dr Ocala, FL 34481 San Pablo, CA 94806-5304 Lincolnwood, IL 60712

John Daniel Judith Goldsmith K&K Capital Management, Inc. 225 Wellington Ln 3 Water Ln 3545 Lake St, #201 Cape Girardeau, MO 63701 Manhasset, NY 11030 Wilmette, IL 60091

Kenneth A. Ralston Kaufman Rossin & Co. c/o John E. Page, Esquire LAB Investments Fund, LP 2699 S Bayshore Dr Shraiberg Ferrara & Landau, PA 1875 S Grant St, #600 Miami, FL 33133 2385 NW Executive Ctr Dr #300 San Mateo, CA 94402 Boca Raton, FL 33431

Laulima Partners, LP c/o Smithfield Trust Co. M. Lee Toothman MB Investments, LLC Attn:Robert Kopf Jr. 216 Barbados Dr 180 N Wacker Drive, Lower 1 20 Stanwix St, #650 Jupiter, FL 33458 Chicago, IL 60606 Pittsburgh, PA 15222

Marder Investment Advisors Corp. Mark Prevost Martin Casdagli 8033 Sunset Blvd, #830 2372 Hidden Ridge Ln 554 E Coronado Rd Los Angeles, CA 90046 Jasper, AL 35504 Santa Fe, NM 87505 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 31 of 33

Maxine Adler c/o US Trust/Bank of America Nancy Dobrinich Nancy Hollingsworth and Patrici 3860 Dogwood Ave 7107 Arrowood Rd 150 E. Palmetto Park Road, Suite 200 Palm Beach Gardens, FL 33410 Bethesda, MD 20187 Boca Raton, FL 33432

Palm Beach Finance Holdings, Inc. NetWide Capital LLC Pemco Partners, LP c/o Lindquist & Vennum, PLLP P.O. Box 957 8 Lyman St, #204 80 South Eighth Street, Ste 4200 Boulder, CO 80306 Westborough, MA 01581 Minneapolis, MN 55402

Petters Company, Inc. Quantum Family Office Group, LLC Raymond Feldman c/o Lindquist & Vennum, PLLP 1500 San Remo Avenue, Suite 210 4644 Balboa Ave 80 South Eighth Street, Ste 4200 Coral Gables, FL 33146 Encino, CA 91316 Minneapolis, MN 55402

Raymond G. Feldman Family Ventures, LP c/o John E. Page, Esquire Randall Linkous Ron Priestley Shraiberg Ferrara & Landau, PA 1174 SW 27 Ave 5565 N Espina Rd 2385 NW Executive Ctr Dr #300 Boynton Beach, FL 33426 Tuscon, AZ 85718 Boca Raton, FL 33431

Ronald R. Peterson Ronald R. Peterson SALI Fund Services, LLC Jenner & Block LLP c/o Lazar P. Raynal, Esquire McDermott Will & Emery 6836 Austin Center Street, Suite 320 353 North Clark St. 227 West Monroe Street Austin, TX 78731 Chicago, IL 60654 Chicago, Illinois 60606-5096 SSR Capital Partners, LP SSR Capital Management LLC Sage Capital Resources Sandra Linkous Strategic Stable Return Fund (ID), LP 3006 Julia St W, Unit A 1174 SW 27 Ave Strategic Stable Return Fund II, LP 4514 Cole Ave, #810 Tampa, FL 33629 Boynton Beach, FL 33426 Dallas, TX 75205

Sims Moss Kline & Davis, LLP Spring Investor Services Inc. Select Access Management Three Ravinia Drive Red Bird Farm 15 Valley Dr Suite 1700 4 Nason Hill Lane Greenwich, CT 06831 Atlanta, GA 30346 Sherborn, MA 01770

Sterling Management Inc. Steven Bakaysa Table Mountain Capital, LLC 160 White Oaks Ln 2251 Wigwam Pkwy, Apt. 1026 850 Quince Ave Vadnais Heights, MN 55127 Henderson, NV 89074 Boulder, CO 80304

Tradex Global Master Fund Ted Goldsmith Tradex Global Advisors c/o Andrew N. Friedman, Esquire 3 Water Ln 35 Mason St, 4th Fl 1100 New York Avenue, N.W. Manhasset, NY 11030 Greenwich, CT 06830 Suite 500, West Tower Washington, DC 20005

VAS Partners, LLC Umbach Financial Group, LLC Vincent Allegra Attn: Vincent P Allegra 525 South Flagler Drive, #100 449 S Evergreen St 4401 W Roosevelt Rd West Palm Beach, FL 33401 Bensenville, IL 60106 Hillside, IL 60162 Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 32 of 33

Joel Barnett Wilbur Hobgood Ocean Gate Capital Management, LP Barnett Capital Ltd. 2189 Radnor Ct 5 Sewall Street 450 Skokie Blvd., # 604 North Palm Beach, FL 33408 Marblehead, MA 01945 Northbrook, IL 60062

Investment Law Group of Gillett, Pete L DeMahy, Esquire Santa Barbara Investment Capital Mottern & Walker, LLP DeMahy Labrador et al. 2220 Santiago Rd 1230 Peachtree Street, N.E., Suite 2445 150 Alhambra Circle Santa Barbara, CA 93103 Atlanta, Georgia 30309 Coral Gables, FL 33134 Attn: Bob Mottern / Sky Bell

Debevoise & Plimpton LLP Bruce Prevost Attn: Edwin G. Schallert, Esquire David Harrold 8292 Nashua Dr 712 NE 71st Street 919 Third Avenue Palm Beach Gardens, FL 33418 Boca Raton, FL 33487 New York, NY 10022

U.S. Bank National Association Lewis B. Freeman & Partners, Inc. Lionheart Insurance Fund Series Interests of c/o Richard G. Wilson, Esquire c/o Kenneth A. Welt, Receiver the SALI Multi-Fund Series Fund, LP Maslon Edeman Borman & Brand, LLP 6836 Austin Center Blvd. Ste 320 1776 North Pine Island Road, Suite 102 90 S. 7th Street, Suite 3300 Austin, TX 78731 Plantation, FL 33322 Minneapolis, MN 55402-4140

Sarah Stroebel, Snr Corp Counsel Robin J. Rubens, Esquire Genesis Capital LLC U.S. Bank National Association Levine Kellogg Lehman, et al., Attention: Mike Dubinsky 201 South Biscayne Blvd. 800 Nicollet Mall nd 7191 Wagner Way NW, Suite 302 22 Floor, Miami Center Minneapolis, MN 55402-4140 Gig Harbor, WA 98335 Miami, FL 33131

Prateek Mehrotra, CFA, CAIA Ron Robertson, President Globefin US Advisors, LLC Sumnicht & Associates Strategic Capital Group Attn: Andrew Hoffman W6240 Communication Ct, #1 7191 Wagner Way NW, Suite 302 980 6th Avenue, 4th Floor Appleton, WI 54914-8549 Gig Harbor, WA 98335 New York, NY 10018

Andrew P. O’Brien, Esquire Internal Revenue Service U.S. Securities and Exchange Commission Sean O’D. Bosack PO Box 7346 Chicago Regional Office 780 N. Water Street Philadelphia, PA 19101-7346 175 West Jackson Blvd., Suite 900 Milwaukee, WI 53202 Chicago, IL 60604

Daniel N. Rosen, Esquire John L. Kirtley Matia L. Kreiter Parker Rose, LLC 780 N Water Street 780 N Water Street 888 Colwell Building Milwaukee, WI 53202 Milwaukee, WI 53202 123 North Third Street Minneapolis, MN 55401

Palm Beach Offshore II, Ltd. Palm Beach Offshore Ltd. Kenneth A. Welt Admiral Financial Center, 5th Floor Anchorage Centre, 2nd Floor 1776 North Pine Island Road, Suite 102 90 Fort Street, PO Box 32021 PO Box 32021 SMB Grand Cayman KY-1208 Plantation, FL 33322 Grand Cayman, Cayman Islands Cayman Islands

Scotia Capital Citco Global Securities Services Lane E. Roesch The Bank of Nova Scotia 2600 Airport Business Park White & Case, LLP Global Alternative Asset Group Kinsale Road 200 S. Biscayne Blvd., Suite 4900 40 King Street W, 68th Fl Co.Cork Miami, FL 33131 Toronto Ontario M5W 2X6 Ireland Case 09-36379-PGH Doc 2099 Filed 01/03/14 Page 33 of 33

Michael R. Band, Esquire Monica Hanlet Frank Vennes Band Law Firm PO Box 321255 2440 N. Courtenay Pkwy. 169 East Flagler Street, Suite 1200 Palm Coast, FL 32135-1255 Miami, FL 33131 Merritt Island, FL 32953

Deutsche Bank (Cayman) Ltd c/o Deutsche International Trust Corporation HSBC SECURITIES (USA) INC Carlton Beal Family Trust Mauritius Limited 452 Fifth Avenue - T3 104 S Pecos Street Level 5 Altima Building, New York, NY 10018 Midland, TX 79701 56 Ebene Cybercity Mauritius

Beal Family trust FBO Kelly Beal The Beal Trust U/A Beal GST Exemption Trust 104 S Pecos Street 104 S Pecos Street 104 S Pecos Street Midland, TX 79701 Midland, TX 79701 Midland, TX 79701

Thomas J. Ginley Life Ins. Trust Scall, LLC Carlton Beal Family Trust Dated 1-22-97 c/o Edward Toptani, Esq. 104 S Pecos Street 6650 N Tower Circle Drive 127 East 59th Street Midland, TX 79701 Lincolnwood, IL 60712 New York, NY 10022

U.S. Trust and Patricia Scwab James L. Volling, Esquire Dana L. Choi, Esquire Successor Trustees, TUA Maxine B Adler 2200 Wells Fargo Center Holland & Knight LLP POB 842056 90 South Seventh Street 701 Brickell Avenue, Suite 3000 Dallas, TX 75284 Minneapolis, MN 55402-3901 Miami, FL 33131

Hillcrest Properties Scott M. Grossman c/o Stephen Willia David S. Foster, Esq. Greenberg Traurig, P.A. Latham & Watkins LLP 401 East Las Olas Blvd., Suite 2000 59 Damonte Ranch Pkwy, #B-360 233 South Wacker Drive Fort Lauderdale, FL 33301 Reno, NV 89521 Chicago, IL 60606

Bradley M. Saxton, Esq. John Bergman, James A. Lodoen, Esq. c/o Erika L. Morabito, Esq. Ryan E. Davis, Esq. Lindquist & Vennum PLLP FOLEY & LARDNER LLP Winderweedle Haines et al. 4200 IDS Center 3000 K Street, N.W., Suite 600 390 N. Orange Avenue, Ste. 1500 80 S. 8th Street Washington, D.C. 20007 Orlando, Florida 32802 Minneapolis, MN 55402

Agile Sky Alliance Fund, LP Zimmer Lucas Capital LLC Paul J McMahon, Esq. Cathy Ta, Esq. th Best Best & Krieger 7 West 54 Street Paul Joseph McMahon, P.A. 3750 University Avenue New York, NY 10019 The Wiseheart Building Riverside, CA 92502-10208 2840 SW 3 Ave Miami, FL 33129

James F. Bendernagel, Jr., Esq. Alton Opitz George Novogroder Sidley Austin LLP 1501 K Street, N.W. 144 Newhaven Lane 875 N. Michigan Avenue, # 3612 Washington, DC 2005 Butler, PA 16001 Chicago, IL 60611

Roger G. Schwartz, Esq. Sean M. Berkowitz, Esq. Latham & Watkins, LLP Latham & Watkins, LLP 885 Third Avenue 233 South Wacker Drive New York, NY 10022 Chicago, IL 60606